ADC Telecommunications plans $200 million repurchase of 1% convertibles

By Jennifer Chiou

New York, Dec. 18 - ADC Telecommunications Inc. said it plans to buy back $200 million of its 1% convertible subordinated notes due 2008 using proceeds from offerings of convertibles.

The Eden Prairie, Minn., broadband company said it intends to offer $200 million of convertible subordinated notes due 2015 and $200 million of convertible subordinated notes due 2017 under a shelf registration.

ADC said it also intends to grant the underwriters an option to purchase up to an additional $25 million of each series of notes.

Remaining proceeds are earmarked for general corporate purposes and strategic opportunities, including possible future acquisitions or investments in complementary businesses, technologies or products.

ADC said it may also use a portion of the remaining net proceeds to repurchase on or after June 23, 2008 all or a portion of its $200 million of floating-rate convertible subordinated notes due 2013.

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